07/02/2012 - 14:22

Birkbeck's Atlas South Sea Pearl to raise $4.2m

07/02/2012 - 14:22

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Birkbeck's Atlas South Sea Pearl to raise $4.2m

Perth-based pearl farmer, Atlas South Sea Pearl, is aiming to raise up to $4.2 million through a non-renounceable rights issue.

Atlas said the rights issue came after a challenging 2011 for the pearl industry.

The offer will see 1 new share issued to rights holders for every 1.7 shares in Atlas, at a price of $0.05 per share.

The share value offered represents a 40 per cent discount on Atlas’ closing share price as of Friday.

The $4.2 million Atlas hopes to raise from the issue will be primarily directed towards improving infrastructure support and funding managerial and technical roles within the organisation. 

The rights issue comes on the back of Steve Birkbeck’s appointment as chief executive and the arrival of Stephen Gleeson as chief financial officer last week.

The senior management change coincided with the resignation of Simon Adams as managing director.

In August of last year Atlas recorded a half-yearly profit of $1.7 million and revenue growth of 23 per cent.

However the company said export conditions for luxury items weakened substantially towards the end of 2011.

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